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Andrew C. Obermeyer, Director of Contracting

Tests, Targets & Countermeasures

Missile Defense Agency

Date August 5, 2008

Time 10:45 – 11:45

Contracting Challenges in the Missile Defense Agency

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The Challenge

So you think you want to be

the Director of Contracts for a large organization…….?

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Missile Defense Agency (MDA)

Who and What is MDA?

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A Little Background…

• What exactly is MDA? (Timeframe: November 2004) - A new “Other Defense Agency” under DoD AT&L - Previous heritage was SDIO and BMDO (circa 1984) - Numerous, quasi-independent systems – “Elements”

• Each element managed and “optimized” separately• Individual budgets and resources – Few constraints• Most contracting was done by Services (Army, Navy Air Force)• Very little centralized control of contracts or programs at MDA• No demonstrated missile defense capability to warfighter

- MDA was chartered in 2002 by Presidential Mandate• Goal: integrated “system of systems” w/C2BMC capability• Control and integrate all assets, then integrate with warfighters• MDA given leeway from DODD 5000 series, other flexibilities

- Approximately 65% of MDA Personnel are Contractors• SETA Support: Does not count personnel from R&D Contracts

• MDA “dares to be different” – for better or worse!!

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Sensors

Space Tracking And Surveillance System Sea-Based Radars

Forward-Based RadarWith Adjunct Sensor

Midcourse X-Band Radar

Defense Support Program

Command, Control, Battle Management &

Communications

Terminal High Altitude Area Defense

Patriot Advanced

Capability-3

Aegis Ballistic Missile

Defense / Standard Missile-3

Ground-Based Midcourse Defense

Airborne Laser

Terminal Defense Segment

Terminal Defense Segment

Boost Defense Segment

Boost Defense Segment Midcourse Defense SegmentMidcourse Defense Segment

Integrated Ballistic Missile Defense System

Multiple Kill Vehicle

USSTRATCOMUSSTRATCOM USPACOMUSPACOMUSNORTHCOMUSNORTHCOMNMCCNMCC EUCOMEUCOM CENTCOMCENTCOM

Kinetic Energy Booster

Early Warning Radar

Sea-Based Terminal

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An Integrated Approach To Ballistic Missile Defense

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2

3

4

5

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Surveillanceand Track

Surveillanceand Track

Launch DetectionLaunch

Detection

Location andInterceptor

Commit

Location andInterceptor

Commit

Refinement and Interceptor

Updates

Refinement and Interceptor

Updates

Interceptor AcquisitionInterceptor Acquisition

InterceptInterceptKill VehicleKill Vehicle

FireControl

Node (FDC)

FireControl

Node (FDC)

InterceptorLaunch

InterceptorLaunch

FylingdalesUEWR

FylingdalesUEWR

SpaceSensorsSpace

Sensors

Aegis RadarAegis Radar

Cobra Dane Radar

Cobra Dane Radar

FireControl

Node (MDE)

FireControl

Node (MDE)

MissileField

MissileField

BealeUEWRBeale

UEWRStandard Missile

Standard Missile

AN/TPY-2 Radar

AN/TPY-2 Radar

Sea-BasedRadar

Intercept

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Capability-Based Acquisition

Approved for Public Release07-MDA-2362 (27 MAR 07)

MDAFunding Profile

2 Year Cycle

DoD

Operations

Procurement

Testing

Development

R&D

Requirement and Threat Definition

TR

AD

ES

Rqmt Def.

JCIDS Service Prog. Mgt. Test Auth. Fielding Auth.

R&D Development Testing Procurement

IOCCapability

Capability Delivery

Funding

Strengths• Fully flexible funding• Combined development and operational testing• Integrated capability management

Risks• Transition to services

EarlyDelivery

EarlyDelivery

EarlyDelivery

War

figh

ter

Fee

db

ack

War

figh

ter

Fee

db

ack

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The Scene: November 2004 (1 of 2)• New MDA Director – Lt Gen “Trey” Obering

– Focused on Integrated Ballistic Missile Defense System (BMDS)

• Completely integrated mission capability for warfighter• “Limited Defensive Operations” established per president’s

mandate

– Desire to transition from loose confederation of R&D organizations into an integrated, interdependent systems acquisition organization

– “Capability Based” Acquisition and management– MDA Director is SAE, HCA and BMDS Program

Manager

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The Scene: November 2004 (2 of 2)• Most MDA contracting accomplished externally

– Service contract numbers, policies and procedures – not MDA– MDA desired more centralized control, decision making via:

• MDA contracting personnel awarding and administering……• MDA contracts (pursuant to contracting authority from MDA HCA)• Notwithstanding “quality of service” provided by services

• Director’s Mandate: establish an MDA “system contracting” organization with robust capability across the entire BMDS!

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The Scene Cont’d…

• MDA Contracting Locations– National Capital Region (NCR) – MDA

– Aegis BMD (NCR) - Navy

– Huntsville (HSV) - Army

– Colorado Springs (COS) - MDA

– Albuquerque (ABQ) – Air Force

– Los Angeles (LOS) – Air Force

• Lots of Dispersion, No Control

• Goal: Develop an Organic MDA Workforce

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Fast Forward – Spring 2005

• New, evolving agency – “herding cats”

• BRAC move to Huntsville by 2010

• Transition from R&D to system acquisition

• Transition to organic capability to do MDA contracting and program management

• Focus on the future vice precedence

• Reengineering of policies and processes

• Everything was changing - and still is!!

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Wanna Be A Contracts Director?• Your mission, should you choose to accept it, is to recruit,

retain, and develop a highly competent system contracting organization to support transition of advanced technology into an operational mission

• Your constraints:– You must provide immediate, high-quality support– The mission and workload are rapidly expanding– You’re already severely undermanned– You must “take back” programs from services– MDA is BRAC’d to Huntsville by NLT 2011– Govt 1102 availability is scarce in NCR, elsewhere– The HR hiring system is seriously deficient– MDA is suffering significant budget cuts– OSD opposes using contractor support vice 1102

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Perspective: Nov 2004 (1 of 2)

• MDA senior leadership criticism– Contracting directorate was too “top heavy”

• Too many chiefs, not enough Indians• Result of specific direction of previous MDA Director

– Contracting directorate was overmanned• Number of slots were cut based on this assumption

– Frustration over external support by services; inability to account for specific quantity of support acquired

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Perspective: Nov 2004 (2 of 2)

• Actions taken by Contracting Directorate (DAC)– Reduced number of directors, gave more responsibility– Maintained workload level; previous cuts were restored

after recognition that Contracting was actually undermanned

– Prepared plan for MDA Director to stand up completely “organic” MDA contracting directorate by 2010 – approved!

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The Challenge: Creating an Organization in Huntsville (1 of 2)

• Spring 2006– Accelerated BRAC transition already evident– Largest MDA program – Ground Based Midcourse

Defense (GMD) had major disconnect/problem• Program Office in Huntsville, Contracting Office in NCR• GMD Program Director expressed desire for collocation

– Mandated significant acceleration of planned schedule

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The Challenge: Creating an Organization in Huntsville (2 of 2)

– Other MDA programs needed HSV presence• THAAD – already in HSV, but not MDA contracting• Targets - same as above• NCR programs – some moving to HSV ahead of schedule• Numerous programs in HSV administered by SMDC for MDA

• The Goal: Create major presence in HSV ASAP!!

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Desired Attributes - Huntsville • Diverse backgrounds and experience – “jointness”

– Recruit personnel from around the country

• “Best and Brightest” capability • Strong work ethic and dedication• Ability to perform well under continuous pressure• Adaptability, flexibility and creativity – “risk taking”

– “Find a way to get the mission accomplished”

• Teamwork: with program office, contracting office• Willingness and ability to accept ambiguity

• Bottom Line: “Delight the Customer!”

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Standing up the New Organization: Management Concerns

• Who to recruit?– Majority of NCR personnel unwilling to relocate to HSV

– Majority of available 1102s are in Huntsville

– Desire to avoid “raiding” existing agencies in Huntsville• But most SMDC personnel already doing work for MDA

• Market for 1102s increasingly scarce – even in Huntsville

– Avoid “Huntsville-centric” way of thinking• Desire of agency to do things differently

• Want to avoid established paradigms and “groupthink”

• Where to put them?– Acceptable office space critically short – “quality of life”

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Standup Concerns Cont’d• Timing

– If you need people now based on workload, do you hire “best currently available” instead of taking longer to hire “best ultimately available” – may be a big difference!

• Contractor Support Services (CSS)– An established part of the MDA workforce in the NCR

• Perform Contract Specialist duties

• Critical to mission accomplishment in NCR

• Can be recruited more easily and faster than normal govt process

– Not generally used in most agencies – but increasing

– Augment with CSS if can’t hire desired quality/quantity?

• Critical Issue: What is the right balance?

• Tradeoff: How much “hurt” can we accept if delay?

• Decision: Hire best available, let market sort out

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The Current Environment (1 of 2)

• NCR programs are moving faster than anticipated• NCR personnel are leaving MDA faster than

anticipated– Difficult to hire replacement personnel in the NCR –

BRAC impact

• Overall MDA workload is increasing – everywhere!

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The Current Environment (2 of 2)• Creates need for accelerated recruitment for HSV

– But are there enough qualified people? By what standard?

– 1102s are in short supply everywhere – especially 1102s with systems acquisition backgrounds

– What is impact to losing agencies? How much control do we have?

• MDA “reengineering” – different structure, processes– Agency will do most of its contracting in Huntsville by

Summer 2008

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BLENDED WORKFORCE PROFILE

0

500

1000

1500

2000

2500

3000

3500

4000

4500

$M

0

10

20

30

40

50

60

70

Sta

ffin

g

Dollars 22 136 255 354 638 702 894 653 344 252 300 383 557 955 1370 1548 2500 2774 3400 3841 883

Actions 21 211 278 397 544 585 642 644 592 523 550 517 840 622 659 634 957 1191 1250 1500 407

SETA 0 0 26 26 26 26 26 52 49 48 42 32 31 27 27 26 27 39 38 38 50

GOV 11 11 12 13 14 14 13 13 13 20 24 39 41 43 39 39 47 56 65 62 60

FY 86

FY 87

FY 88

FY 89

FY 90

FY 91

FY 92

FY 93

FY 94

FY 95

FY 96

FY 97

FY 98

FY 99

FY 00

FY 01

FY 02

FY 03

FY 04

FY 05

FY 06

(1Qtr

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MDA Contracting Personnel Growth

YEAR NCR HSVOTHER

(CA,CO,NM) TOTAL

CIV CTR CIV CTR CIV CTR

Feb 05 69 39 0 0 14 0 122

Feb 06 56 51 7 0 15 0 129

Feb 07 48 58 47 4 16 0 173

Feb 08 52 61 86 20 18 4 241

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Huntsville Projections– Fall 2005: 0

– Fall 2006: 10

– Fall 2007: 100

– Fall 2008 130

– Fall 2009 150

– Fall 2010 200

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Organic Contracting Capability• NCR (Aegis) – Conversion to MDA by end of 2007• LOS (STSS) – Conversion to MDA by end of 2007• ABQ (ABL) – Conversion to MDA by end of 2009• COS (MDIOC) – No conversion necessary• HSV (SMDC) – Conversion NLT 2010

• Goal is consistency and transparency across MDA– Common policies

– Common processes

– Common culture

• Contracting is leading the way in MDA

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Current Status - Huntsville• Contracting directorates stood up to support:

– GMD– THAAD– European Site– Kinetic Energy Interceptor– Multiple Kill Vehicle– Targets and Countermeasures– Advanced Research Center– Simulation Center– International Support

• More programs are on the way!

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Current Environment for MDA• Congressional mandate: restore quantity and quality of

acquisition workforce – MAJOR DPAP Objective• Congress/OSD concern over inherently governmental

functions – are we operating as we’re supposed to?• 2007 DPAP PMR Audit of MDA Contracting

– Criticized heavy use of contractor support personnel and the way in which they are used (at MDA, KR support perform all functions (including negotiations) except PCO decisions and signature)

– Perceived abuse of authority, potential COI• Subsequent DPAP Direction to MDA to create plan to

eliminate use of contractor support personnel• Okay, Director: What would you do??

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What Else Lies Ahead?• Building a replacement workforce

– Focus on a robust intern program• Nationwide recruiting• Intense training program with rotational assignments

– Increased national recruiting at journeyman level• Good people want to come to Huntsville – we need to

find them

• Major emphasis on internal training– Cross-pollination based on diverse backgrounds– Challenge workforce to improve their capabilities

• Ultimate goal: a “world class” workforce

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Getting Off the Stage…

QUESTIONS?